Loan trader soft launches with 20 banks

The Standard, Hong Kong

Article Date: May 27, 2021 6:23 PM

An exchange for facilitating loans trading, PrivEx, will soft launch a digital exchange for secondary corporate loan trading among financial institutions in July, with about 20 banks and funds becoming the first batch of members.

The company has been approved by the Monetary Authority of Singapore as a recognized market operator.

Corporate debt is usually traded on the over-the-counter markets. Asia’s secondary loan trading volume is estimated at around US$10 billion per year before the coronavirus disease pandemic, compared with US$3.2 trillion of global markets.

“We are targeting to capture more than 50 percent of the Asian secondary loan traded volume within three years,” said Stephen Ching, managing director of sales (North Asia).

PrivEx’s proprietary trading system could streamline loan trading processes from more than 13 hours to 15 minutes, Ching said. It has approached 60 banks in Hong Kong.